We received a single step construction loan from a mortgage broker. After construction, we were ready to close our loan, and suddenly the broker said they could not close the loan. Because of the decline in the marked we were not able to sell our existing home, and they said this meant we could not close. However, they never disclosed to us that we had to sell our home. It was listed for sale, but we would never have guaranteed our house would sell!! They approved our loan, funded our loan, and then said they couldn’t close. Then they gave our loan to another broker without so much as a phone call. Suddenly I received paperwork from another broker. When I called the new broker she said the previous broker had give her all my information. We ended up closing with them, but instead of the single step construction loan, we ended up having to close with a second set of closing costs, increasing our loan, and payment, even more!!
I am thinking about suing the the mortgage broker for the costs of the second closing fees, does anyone think I have a case? Any advice? Any lawyers out there want to do a consultation?
Please help!!
For clarification, all of my spreadsheets, documents, and even all of their advertisements state, single step construction to permanent loan. We had a pre-approval letter, and then funding documents all based on our current financial situation. How could everything be approved by underwriters, and then at the last minute they change thier minds? They still made a lot of money off the interest that was paid to them for our construction loan period, they held the loan for six months and when it was time to convert. Then we had someone new to deal with. And the agent at the seconde mortgage broker we ended up closing with, now works for the first mortgage broker!!!!!
If mortgage brokers are licensed in your state then I would contact the licensing body for your state. You may be able to bring some sort of action that will cause the broker to lose their license.
My mortgage broker gave my loan away and we had to pay closing costs twice!?
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If mortgage brokers are licensed in your state then I would contact the licensing body for your state. You may be able to bring some sort of action that will cause the broker to lose their license.
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DId your loan documents for the construction loan ever state that you would only have to close once? I am a loan officer and have been involved with construction loans. OUr loans name is called "one time close" You close once before construction then after construction the loan converts to fully amortized loan. One set or clost and two loans, the construction loan and the fixed loan.
If your loan docs don’t say antyhing about one loan closing and your loan automatically converting to new loan then I don’t think that the broker did anything illegal with the loan as far as charging you extra costs.
If a broker can make money then they will. Basically, if the broker could not do the second closing then he was the one out of money as well. The broker was just as upset as you were that he could not get the second closing done for you because he could not make an extra set of commisions. I don’t think that you have a case about the closing costs. I think that it was a given that you would have had to do a refinance into a second loan. The reason that I know that is because not many lenders have our construction loan program.
This is just my opinion. You could talk to your atty just to see.
Check out your construction loan loan docs and see what they say.
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